Prontoblock, a leading digital asset fintech company, is pleased to announce its strategic partnership with Mercantile Bank International (MBI). This partnership aims to revolutionize the commercial paper market through the tokenization of these financial instruments.
This partnership will empower MBI clientele to engage in the purchase and issuance of tokenized commercial paper using Prontoblock’s cutting-edge digital assets platform. Prontoblock will collaborate closely with issuers to identify the most suitable commercial paper instruments for tokenization.
The outstanding value of U.S. commercial paper exceeded $1.25 trillion at the end of 2022. Commercial paper works like fixed-income investments but tends to have rates higher than Treasuries with similar maturities, and even higher than bank savings deposit rates. Of the $1 billion in assets Prontoblock plans to tokenize by Q2 2024, $250 million will be high grade commercial paper.
Prontoblock’s digital asset platform is revolutionizing investment opportunities such as hedge funds, private equity, fixed income and commercial paper. Leveraging the power of blockchain technology and smart contracts, the platform tokenizes financial assets issued by its clients, streamlining investment processes and enhancing operational efficiency.
Leveraging its strong track record of enabling clients to participate seamlessly in the digital asset realm, MBI offers high-quality, high-yield, and liquid short-term instruments such as commercial paper that generate attractive risk-adjusted returns.
Bill Gleason, CEO of Prontoblock, commented, “MBI, with its robust presence in the US digital asset space, is an ideal partner as they routinely generate excess liquidity and are in search of high-quality, short-term liquid instruments to invest their short-term liquidity and generate an attractive risk-adjusted return.”
Bo Collings, CEO of MBI, echoed the sentiment, “Our alliance with Prontoblock perfectly aligns with our strategic vision. Tokenizing commercial paper allows us to provide a diverse array of investment opportunities to our clients while facilitating their access to liquidity. Through leveraging our advanced blockchain technology stack, we are poised to enhance client investment capabilities, yielding exceptional outcomes while meticulously adhering to US securities regulations.”
By taking proactive measures to ensure that their financial solutions are compliant with relevant laws and regulations, both MBI and Prontoblock are solidifying their status as trusted partners for their global clientele, ensuring that their financial interests are safeguarded within the bounds of regulatory frameworks. As digital asset adoption and regulatory compliance regulations evolve, both companies remain committed to ensuring clients can navigate the complexities of the digital assets landscape with confidence.